The resale volume of non-landed private
residential units was up 33.4% year-on-year in July, with an estimated 515
units resold, SRX Property said on Thursday (Aug 13).

However, compared to the previous month,
resale volume was down 10.4% from the 575 units resold in June 2015.

Resale prices inched up 0.3% from June,
driven by units in the Core Central Region and Outside of Central Region, which
posted price increases of 1.7% and 1% respectively. In contrast, prices of
units in the Rest of Central Region were down 2.2% from the previous month, SRX
Property said.

Overall resale prices were down 0.9%,
however, when compared on a year-on-year basis.

The median Transaction Over X-Value
(TOX), which measures whether people are overpaying or underpaying SRX
Property’s estimated market value, remained neutral.

For districts with more than 10 resale
transactions, District 9 (Orchard, Cairnhill, RiverValley)
posted the highest median TOX of $37,000. The lowest median TOX was in District
15 (Katong, Joo Chiat, Amber Road)
and District 21 (Upper Buit Timah, Ulu Pandan) at -$35,000.

TOX has remained neutral at zero for
the past four months.

July private home rentals down: SRX Property

Rental prices in the non-landed private
residential market fell 0.3% in July compared with the previous month,
according to SRX Property.

Units in the Core Central Region saw a
0.4% decrease in rent, and those in the Rest of Central Region and Outside Central
Region saw decreases of 0.2% and 0.3%, respectively.

On a year-on-year basis, rents in July
were down 5.7%, and down 12.5% compared with its peak in January 2013.

Looking ahead, market watchers expect
the downward pressure on rents to continue as more homes are built, and as the
Government tightens foreign labour policies.

About 11,600 private homes are expected
to complete this year, while another 21,043 units will come on stream next
year.

Earlier last month, the Manpower
Ministry said work pass holders will need to earn a minimum fixed monthly
salary of $5,000 to sponsor their spouse or children to stay in Singapore
on the Dependant's Pass, up from the current $4,000.

The salary bar will also be higher for
who want to bring their parents to Singapore on Long Term Visit
Passes. It will be revised to $10,000 a month, up from $8,000.

SIBOR climbs to four-month high

A key interest rate benchmark hit a
four-month high on Thursday (Aug 13), as sentiment towards the Singapore dollar
remain weak following the depreciation of the Chinese Yuan.

On Wednesday, the three-month Singapore
Interbank Offered Rate (SIBOR) rose to 0.9345%. On Thursday, the rate climbed
further to 0.9388%.

Property analysts said banks have not
yet adjusted mortgage rates that are pegged to SIBOR, which are currently
hovering around 1.5 to 1.7%. The rate is expected to rise to 2% by the end of
this year.

The vacancy rate for residential
properties is also expected to climb, following the tightening of the labour
market and slowing down of the economy. Experts said some owners may be forced
to sell their properties due to difficulties servicing their loans.

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